Study suggests Indiana's tax code discourages small, homegrown businesses

Source: Tony Cook, Indianapolis Star, September 14, 2012

A new study of Indiana’s business tax structure found that small, Indiana-based manufacturing corporations generally face a higher effective tax rate than larger, out-of-state firms. The study, conducted by Ball State University’s Center for Business and Economic Research, found several inequities in the state’s tax code that result in larger, service-oriented businesses almost uniformly paying a smaller share of total revenue in state taxes than smaller, manufacturing-based firms. The study is provocative because it suggests Indiana’s tax code discourages small, home-grown businesses that fuel job creation.
See also:
The Relative Tax Burden on Indiana’s Business: A Micro-Simulation of State Tax Liabilities
Source: Hilary Fichter, Michael J. Hicks, Ball State University Center for Business and Economic Research, Policy Brief, September 2012

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